Despite high gas prices, "ballooning" airfares and "crippling" inflation, hotel performance worldwide remained “widely steady” in April, with increases in both the top and bottom line, according to HotStats’ latest data.
Highlights from the data:
U.S.
April gross operating performance per available room reached $96.08 in the U.S., 92 percent back to where it was pre-pandemic. Accounting for the rise was a strong top line that featured both growth in occupancy and average daily rate, with the latter outpacing where it was in April 2019, $5 higher on a nominal basis.
Total revenue per available room was recorded at $226, which was still $40 off where it was in April 2019.
Though profit is driving forward, expense pressure continues to be a thorn in hotel operators’ sides. Total payroll continues to rise as labor shortages plague hotels going into the summer season. Payroll stood at $66.50 per available room in April, $46 higher than where it was in April 2020 at the height of global lockdowns, but still around $20 less that where it was pre-pandemic.
Europe
Though Europe remains below the U.S. in regard to performance on a pure currency basis, it is still seeing a continual performance rise in its metrics. The continent is now showing a V-shaped recovery along most revenue and profit metrics after a precipitous dip from October to January.
TRevPAR hit €142 in April—well below April 2019, but up 390 percent year-over-year, a result of both a jump in RevPAR and ancillary revenue delivered by food and beverage.
GOPPAR was up to €40 in the month, which is climbing, but still well in recovery mode and around €11 off its prepandemic number. HotStats called this "a far cry" from April 2021, when GOPPAR turned negative.
Middle East
After an exemplary March, the Middle East came back down to earth in April, but is still pumping out strong month-over-month performance. On the back of Expo 2020 in Dubai, the region pushed to new performance highs, but now that the six-month event has closed as of the end of March, the Middle East will look for other ways to extend its success.
Occupancy across the region was down some 20 percentage points over the previous month, but ADR remained high at $245, which is the highest it’s been in more than four years and $71 higher than April 2019.
ADR-led RevPAR amounted to $133, which was $20 off March, but $2 higher than in April 2019.
Dubai RevPAR was at its lowest since the start of Expo 2020 and $20 lower than April 2019. GOPPAR fell with it to $106, $22 lower than April 2019.
A still-strong top line led to solid bottom-line numbers across the Middle East as a whole, with GOPPAR of $85 only $2 off its April 2019 level.
China
With parts of China still under lockdown due to Covid-19, Asia-Pacific performance took a hit. For the second consecutive month, China GOPPAR was in negative territory at minus-$4.31. The good news for hoteliers is that after a two-month lockdown in Shanghai, the city is now moving to end it as of June 1.
After hitting an occupancy high of 65 percent in July, the metric was recorded at 33 percent in April, the lowest it’s been since February 2021.